FXI Dividend Type Payments

iShares China Large-Cap ETF dividend

Although FXI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares China Large-Cap ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):

iShares China Large-Cap ETF (FXI)
Bid Ask Last Change Volume P/E Market Cap
33.75 33.79 33.80 -0.20 19.6M - 6.5B

FXI Dividend-Like Income Using Covered Calls

With FXI at 33.80, here's a table showing how big the annual "dividend" (i.e. total annual call premium received) would need to be to attain 3%, 5%, and 10% annual yields. Also shown is the equivalent number of cents/day necessary to achieve each yield:

Annual Yield Annual Premium Cents/Day
3% 1.01 0.3
5% 1.69 0.5
10% 3.38 0.9

So now we need to find out of the money covered calls that pay at least the prescribed cents/day amount of time premium. That will generate income and, because they are out of the money, leave room for some upside potential on the stock. Here are some examples:

3% Yield On FXI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 2 34.00 0.20 4 5.0 0.21 (0.6%)
Jun 6 34.00 0.99 39 2.5 0.21 (0.6%)
5% Yield On FXI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 2 34.00 0.20 4 5.0 0.21 (0.6%)
Jun 6 34.00 0.99 39 2.5 0.21 (0.6%)
10% Yield On FXI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 2 34.00 0.20 4 5.0 0.21 (0.6%)
Jun 6 34.00 0.99 39 2.5 0.21 (0.6%)

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Want more examples? FXH Dividend | FXL Dividend